Shadee Corporation expects to sell 640 sun shades in May and 420 in June. Each shade sells for $157. Shadee's beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 60 shades. Each shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30. Required: Prepare Shadee's May and June purchases budget for the adjustable poles.
Shadee Corporation expects to sell 640 sun shades in May and 420 in June. Each shade sells for $157. Shadee's beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 60 shades. Each shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30. Required: Prepare Shadee's May and June purchases budget for the adjustable poles.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Shadee Corporation expects to sell 640 sun shades in May and 420 in June. Each shade sells for $157. Shadee's beginning and ending finished goods inventories for May
are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 60 shades. Each shade requires a total of $55.00 in direct materials that includes 4
adjustable poles that cost $5.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on
June 30. Required: Prepare Shadee's May and June purchases budget for the adjustable poles.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff0545f13-419b-4352-b183-f3bea3929371%2F0c4aca03-9927-4332-ba16-3ba9d904e3b6%2Fsd2p5i_processed.png&w=3840&q=75)
Transcribed Image Text:Shadee Corporation expects to sell 640 sun shades in May and 420 in June. Each shade sells for $157. Shadee's beginning and ending finished goods inventories for May
are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 60 shades. Each shade requires a total of $55.00 in direct materials that includes 4
adjustable poles that cost $5.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on
June 30. Required: Prepare Shadee's May and June purchases budget for the adjustable poles.
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